CaixaBank, Civica Study Combining in Spanish Bank Overhaul
Wednesday, March 14, 2012 @ 2:43 PM
CaixaBank (CABK) SA, Spain’s fourth- biggest lender, is studying combining with Banca Civica SA (BCIV), a former savings bank, as part of an overhaul of the nation’s financial industry. Civica shares surged.
CaixaBank, based in Barcelona, and Banca Civica, based in Madrid, are conducting due diligence with a view to a possible deal, the two lenders said in separate regulatory filings today. They are both also considering other mergers, and no final decision has been reached, they said.
Spain’s government is encouraging lenders into a second round of consolidation as it requires them to recognize deeper losses on real estate accumulated during the property crash. CaixaBank Chairman Isidro Faine expects a “wave of mergers,” he said on Jan. 27 as lenders seek to cut costs and boost scale in an economy where lending is shrinking at a record pace.
Read more at Bloomberg.com